# EUR-Lex - 52013JC0004 - EN

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# 52013JC0004

**JOINT COMMUNICATION TO THE EUROPEAN PARLIAMENT, THE COUNCIL, THE EUROPEAN ECONOMIC AND SOCIAL COMMITTEE AND THE COMMITTEE OF THE REGIONS European Neighbourhood Policy: Working towards a Stronger Partnership /* JOIN/2013/04 final */**

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European
Neighbourhood Policy: Working towards a Stronger Partnership

1.
Introduction
 The EU revised the European Neighbourhood Policy
  (ENP) in 2011[1], establishing
  instruments to provide more support to partner countries building deep and
  sustainable democracy and to support inclusive economic development. The
  new ENP’s main features are political association and economic
  integration, the mobility of people, more EU financial assistance, a
  stronger partnership with civil society and better cooperation on specific
  sector policies. This joint Communication, accompanied by a set of Joint
  Staff working documents[2], looks at
  how the EU and partner countries have fared in the implementation of the
  jointly agreed reform objectives.
 Last year was an eventful and challenging year
  for the European Union and its neighbours. The EU continued to work on
  overcoming the financial crisis, and the related economic downturn in
  several Member States. Some of its partner countries in the neighbourhood
  continued to face conflicts, political instability and difficult
  socio-economic conditions. These countries sometimes have to tackle daunting
  political, economic and social challenges, some of which require immediate
  responses. This leaves policy-makers little time to focus on medium- and
  long-term reforms.
 The ENP remains the basis on which the EU works
  with its neighbours to achieve the closest possible political association
  and the greatest possible degree of economic integration. This goal builds
  on common interests and on values — democracy, the rule of law, respect
  for human rights, and social cohesion.
 Democratic transition processes continued for
  many of the partner countries. Libyans voted to elect their constituent
  assembly for the first time in more than four decades. Egypt and Tunisia continued to implement constitutional reforms, although not without difficulties.
  Armenia, Georgia and Ukraine elected new
  parliaments, while Moldova’s parliament elected a president. Democratic
  structures are getting ever stronger though not all of these elections
  have fully met all international standards. Belarussians were called to
  elect their parliament as well. However, elections fell short of OSCE and
  international standards.
 Developments in Egypt, Tunisia and Libya show clearly that transition is complex. Time will therefore be needed to
  establish new political structures and balances and economic growth and
  social cohesion, on the basis of a consensus on core values and
  principles. Constitutional reform is slow, progress is not always linear
  and in many cases the outcomes are still open. In such cases, the EU has
  continued to work with its partners and support their steps towards
  establishing sustainable democracy. 
 Last year, progress across the neighbourhood has
  been very uneven. In many partner countries, wide-ranging reforms were sometimes
  prevented or slowed by vested political or economic interests. In some
  cases, there was some backsliding of reforms. However, more than ever,
  slower economic growth, higher unemployment, persisting inequalities,
  increasing environmental challenges and often declining socio-economic
  indicators make the case for the kind of reforms that are at the heart of
  the ENP stronger than ever.
 The increasing involvement of other actors
  (third countries, regional organisations, etc.) in the Southern and
  Eastern neighbourhoods means that the EU must work more closely with them
  in tackling the problems affecting the region.
 The EU has strengthened political and financial support
  for its partners embarking on political reforms. The analysis of
  developments and of the results of reforms in partner countries shows that
  the ENP works when the willingness to reform is there and society plays an
  active part in the process. Values, models of governance or reforms cannot
  be imposed from the outside. They can only take root when the political
  leaders and citizens buy in to the reform objectives commonly agreed
  between the EU and its partners. The EU must continue to reach out to and work
  with supporters of reform and partnership with the EU. At the same time,
  the EU needs to better communicate how the ENP and its instruments can
  support genuine reform efforts.
 A stronger partnership with society is central to
  the ENP. As a driving force of democratisation and inclusiveness, civil
  society plays a key role in all aspects of democratic and socio-economic
  reform, in advancing women’s rights, in supporting the freedom of
  expression and association, in advocating environmental protection and
  generally in striving for greater social justice. The EU has continued to
  live up to its commitment to work with civil society, national parliaments
  and other key stakeholders such as social partners and business, to ensure
  that the reform objectives agreed with partner countries are a true
  reflection of their societies’ concerns and aspirations. Civil society
  also has a crucial role to play in promoting these reforms and in holding
  governments. The setting up of the Eastern Partnership (EaP) Civil Society
  Forum (CSF), including the establishment of national platforms in the
  partner countries, is a good example of civil society’s strengthened role
  in the ENP. The EU has continued providing support to civil society
  through a range of different funding instruments. 
 The EU and its neighbours also face common
  challenges, including in the economic, security, environmental and
  migration areas. Delivering on the commitments made to its Southern and
  Eastern neighbours, supporting democratic transition and economic reform
  and working closely with them on all aspects of their reform and policy
  agendas, will contribute to the EU’s own security and prosperity.
2. Implementation
 Two years on from the revision of the ENP, implementation
  is the main task and challenge for the EU and its partners. Since 2011,
  progress in implementing the reforms agreed on by the EU and its partners has
  been uneven.  However, it must not lead to disengagement. On the contrary,
  the EU must step up its engagement in the process including over the long
  term.
 Building democracy
  in partner countries is in the hands of their citizens and their elected
  politicians. The ENP can support, but not replace, this process. An
  analysis of the key recommendations contained in the ENP progress reports
  shows that we are only at the beginning of the process. It also sets out
  the challenges that lie ahead. In many neighbourhood countries, progress has
  been made on the key recommendations on elections, often with financial
  and logistical support from the EU. Insufficient progress was made on the
  key recommendations on the freedom of association, expression and assembly,
  a free press and media, the rule of law and an independent judiciary and the
  fight against corruption. Many of the recommendations are as valid today as
  they were in 2012. The insert below
  highlights the implementation of key recommendations of previous year's
  progress reports.
  Armenia acted on some of
  the key recommendations. It prepared a roadmap to improve the electoral
  process, adopted a National Human Rights Strategy and took some measures
  to fight corruption, reform the judiciary and public administration and
  advance sector reforms and regulatory approximation to the EU acquis.
  Azerbaijan acted on only a
  few of the key recommendations. It started implementing the Human Rights
  Action Plan, continued judicial reform and took some steps to address the
  problem of demolitions and forced evictions. It did not cooperate with
  the rapporteur of the Parliamentary Assembly of the Council of Europe on
  political prisoners.
  Georgia acted on most of
  the key recommendations. It ensured broadly free and fair parliamentary
  elections, continued to engage with its breakaway regions, actively participated
  in the Geneva discussions and took measures to improve the living
  conditions of Internally Displaced Persons (IDPs). It also strengthened
  the freedom of expression and opinion, reformed the judicial system and
  advanced sector reforms and regulatory approximation to the EU acquis.
  Moldova acted on most of
  the key recommendations. It stepped up efforts to implement judicial and
  law enforcement reform, engaged in dialogue with Tiraspol, continued to
  implement reforms in the areas of social assistance, health and
  education, energy, competition, state aid and regulatory approximation to
  the EU acquis. It finalised the remaining steps under the first phase of its
  Visa Liberalisation Action Plan (VLAP), and stepped up institutional
  reform of the aviation sector.
  Ukraine: Most of the key
  recommendations still need to be acted on. However, Ukraine did take step s toward legal and judicial reform, with the entry into force of a new
  Criminal Procedure Code and other important legislation. It also adopted
  a law on asylum and refugee status, although implementation is deficient.
  Egypt acted on only some
  of the key recommendations. Power was handed over to a civilian
  government and the state of emergency was lifted. A constitution was
  drafted and adopted by popular referendum. However, the process was
  controversial and heavily criticised by the opposition, leading to a
  deeply divisive political crisis.
  Israel: Most of the key
  recommendations still need to be acted on. No significant change was
  observed in the areas of concern.
  Palestine[3]: Most of the key
  recommendations remain valid and still need to be acted on. Some have
  been acted on however, including holding local elections, further improving
  public finance management and developing costing models in the social
  protection sector. However, the difficulties created primarily by the
  occupation and the deepening financial crisis hindered the Palestinian Authority
  (PA) in tackling reforms.
  Jordan acted on some of
  the key recommendations, notably the establishment of the electoral
  commission and the Constitutional Court and the adoption of a law on
  political parties and an electoral law.
  Lebanon started to act on only a few of the
  key recommendations by making some overdue judicial appointments. Reform
  objectives advanced only slowly against the backdrop of the on-going
  crisis in the neighbouring Syria
  Morocco has taken steps to start implementing
  most key recommendations, but has not finished doing so, despite expressing
  its commitment to the agreed reform objectives. It established a body for
  a national dialogue on judicial reform, drafted (but did not adopt) a law
  establishing an anti-corruption body and continued approximating its
  legislation to the EU acquis.
  Tunisia, which was going
  through a difficult transition, acted on only a few of the key
  recommendations. The establishment of the Independent Electoral
  Commission was approved, but the new electoral law was not finalised. Tunisia signed the regional convention on pan-Euro-Mediterranean rules of origin. Preparations
  for negotiating a Deep and Comprehensive Free Trade Area (DCFTA)
  progressed.
 The EU continued to deal with its
  partner countries’ immediate priorities by helping to establish the rule
  of law and good governance and to lay the foundations for economic growth
  and job creation, as well as sustainable, knowledge-based and socially
  equitable societies. After the first task force for Tunisia in 2011, task forces for Egypt and Jordan brought together representatives of the EU
  institutions, governments, the private sector, international donors and
  civil society, to serve as catalysts for political and economic reform. EU
  financial assistance under the ENPI and other instruments has played a
  critical role in a number of cases.
 The EaP Foreign Ministers’
  meeting in July 2012 stated that the EaP Roadmap[4]
  was a basis for guiding and monitoring the further implementation of the
  Partnership’s objectives until the next EaP Summit. By setting out the key
  reforms partner countries need to implement and describing what the EU can
  do and what support it can offer, the Roadmap illustrates the concepts of
  mutual accountability and joint ownership that are essential for moving
  towards political association and economic integration.
 Work on strengthening
  relations advanced more with some countries than with others. This
  reflects the EU’s commitment to moving further and faster with partner
  countries who are willing and ready to make more progress towards reforms
  (in line with the ‘more for more’ principle). It continued to negotiate association
  agreements that include DCFTAs with the Republic of Moldova, Armenia and Georgia as well as an association agreement with Azerbaijan. It started DCFTA negotiations with Morocco, and is preparing negotatiations with Tunisia, and Jordan. The EU-Ukraine Association Agreement was initialled but not signed.
 Substantial progress was made
  on developing new-generation joint ENP Action Plans or equivalent
  documents. Action Plans reflect the specific needs, capacities and reform
  commitments of each of the partner countries, allowing for nuanced,
  tailor-made, relations between the EU and each of the partner countries. It
  concluded negotiations on Action Plans with Lebanon, Morocco and the PA, and with Tunisia in the context of a privileged partnership. The Action Plans
  will need to be endorsed by the respective Association Councils. The new
  Action Plan for Jordan entered into force in October. Also in October, the
  EU and Algeria started negotiations on a joint ENP Action Plan. Ukraine and the EU reached a common understanding to start updating the current Association
  Agenda, which prepares for the implementation of the future association agreement.
  Preparations were under way to launch negotiations on Association Agendas
  with the Republic of Moldova, Armenia and Georgia.
2.1. Deep and sustainable democracy
 Across the
  neighbourhood, some progress was made on reforms towards deep and
  sustainable democracy. There are still some problems however, and some
  developments risk backsliding.
 There is
  an increasing divergence in democratic reforms in the neighbourhood
  countries. The EU will therefore respond in a more nuanced manner, based
  on the ‘more for more’ principle and a rigorous review of reform
  commitments. To remain credible, it must apply the same high standards to,
  and scrutiny of, democratic reforms, wherever and in whatever form they
  happen.
 Tunisia, Egypt and Libya went through revolutions that triggered
  democratic reforms, while in Jordan, Morocco and Algeria the authorities in power initiated constitutional, electoral and legal reforms. Democratic elections
  were held in Egypt, Libya and Tunisia; concerns remain about the freedom
  of assembly, association and expression, including the freedom of the
  media, in most partners. The EU has deployed election observation missions
  to Algeria and Libya. At the start of 2013, it observed elections in Jordan for the first time. Egypt has accepted that an EU observation mission will monitor
  the upcoming parliamentary elections.
 Eastern countries
  are also on increasingly different paths. Moldova, Georgia and Armenia continued to implement reforms improving the electoral framework and held
  elections that generally conformed to international standards, making clear
  progress in the difficult transformation towards sustainable democracy. Ukraine’s parliamentary elections presented a more mixed picture with several shortcomings.
  There was deterioration in several areas compared to previous elections.
  The elections in Belarus took
  place against a background of repression — another missed opportunity
  for Belarus to hold elections in line with OSCE and international
  standards. Generally, the EU is very concerned
  about the lack of freedom of assembly, association and expression in a
  number of countries. There was no improvement in Belarus in terms of respect for human
  rights, the rule of law and democratic principles.
 In some
  partner countries, civil society organisations (CSOs) and
  sometimes, trade unions, continue to face serious constraints (obstacles
  to the freedom of movement, lawsuits against NGO leaders, cumbersome
  administrative procedures, acceptance of financial support subject to
  authorisation). Egyptian civil society organisations faced increasing
  pressure from the authorities. The current association laws in Egypt, Morocco and Algeria are also a cause for concern. The freedom of association is also lacking
  in Belarus and Azerbaijan. The freedom of association needs to be
  guaranteed and new laws on associations must be in line with international
  human rights standards.
 In several countries of the
  neighbourhood, the media continues to suffer from political and
  economic interference, a lack of diversity and self-censorship. There were
  many cases of harassment and imprisonment of journalists in Azerbaijan and Egypt, while the implementation of legislation on media transparency in Georgia was a welcome development.
 Judicial
  independence needs to be strengthened to a
  varying degree in a number of partner countries, including Egypt, Morocco, Tunisia and Algeria in the South and in the East in particular in Azerbaijan and Belarus. In Ukraine, there are concerns regarding the misuse of the justice system
  for political purposes. Despite some reform of the justice systems, the
  judiciary continues to be perceived as heavily dependent on the executive
  throughout both the Eastern and Southern neighbourhood. High conviction
  rates, excessive use of administrative detention and unsatisfactory application
  of the principle of equality of arms undermined trust in the judiciary.
  Although efforts were made to improve prison infrastructure, prison
  conditions remain a cause for concern and cases of torture and
  ill-treatment continue to be inadequately investigated, fostering a
  culture of impunity among law-enforcement officials.
 Corruption remains a huge problem in many countries in the neighbourhood.
  In most countries no, or only very timid, steps were taken to start
  tackling corruption. Particularly in Ukraine, Lebanon, Azerbaijan, Libya, and Belarus, the perception of corruption remains very high.[5]
 Democratic
  control over armed and security forces
  improved, notably in Libya and Egypt. Reform of the security sector, in
  particular reform of the police, the complete lifting of the states of
  emergency and reform of the penal and military codes to avoid military
  trials of civilians, remains a major problem across the Mediterranean
  neighbourhood. Issues such as the supervision and accountability of the
  police, conditions in the penitentiary system and the treatment of
  citizens undertaking national service continue to be discussed in
  structured dialogues.
 Credible transitional
  justice processes are crucial for the success of transition,
  notably in those countries that have shed authoritarian regimes that
  committed crimes against their own populations. Judicial reforms and
  law-enforcement reforms also have priority status in the EaP, linked to
  the overall objective of maintaining and reinforcing the rule of law.
 Cultural
  and social discrimination against women remains a problem in the
  Southern neighbourhood. Women played an active part in the revolutions.
  Now it is crucial that the transition process and constitutional reform do
  not hinder progress on, or undermine the equality of women before the law
  and in society. There is also much room for improvement in terms of gender
  equality in the East.
 Comprehensive
  anti-discrimination legislation is still a problem across the
  neighbourhood, with few exceptions. Discriminatory attitudes are
  widespread, in particular against the lesbian-gay-bisexual-transgender (LGBT)
  community. 
2.2. Sustainable economic and social development
 Economic growth picked up in only a few of the ENP partners, such
  as Georgia and Azerbaijan, but slowed in most others. External
  risks related to the global economic situation increased, and conflicts also
  impacted negatively on the prospects for economic recovery. Southern and
  Eastern partners continue to face general macroeconomic imbalances and
  high, and sometimes rising unemployment. Southern partner countries in
  particular have high rates of youth unemployment. Ongoing or renewed
  political instability also had a negative impact on growth. Without an increase in growth and effective employment policies
  (including investing in human capital, promoting decent work, and research
  and innovation), high levels of unemployment will persist among the young
  and the informal sector will continue to represent a significant
  proportion of the real economy. Significant socio-economic disparities
  persist in many Eastern and Southern neighbourhood countries. If not dealt
  with, these factors will continue to jeopardise future social stability
  and the transition towards democracy. EU financial assistance has helped to
  tackle them by supporting key economic reforms.
 In
  the context of continuing economic and financial crisis in the euro zone
  and the global economic slowdown, macroeconomic dialogues that the
  Commission held in 2012 with the vast majority of the neighbourhood
  countries (all ENP countries except Libya and Syria) have proved to be a
  useful instrument for economic cooperation for the EU and its partner
  countries. These
  dialogues allowed for an open exchange of views on economic developments
  and policy challenges, including the implications of the turmoil in the
  euro zone for the EU’s neighbourhood. They also served as a platform for
  reviewing the implementation of the economic reform priorities identified in
  the ENP Action Plans and Association Agendas.
 In
  addition to regular macroeconomic dialogues established under various
  bilateral agreements, the Commission holds discussions on economic policy
  with partner countries that benefit from EU macro-financial assistance
  (MFA). This is designed to help the partner countries address
  macroeconomic imbalances and implement growth-oriented structural reforms.
  In 2012, with the release
  of the final instalments, the Commission completed the implementation of
  two MFA programmes approved in 2009 (Armenia, EUR100 million in loans and
  grants) and 2010 (Moldova, EUR90 million in grants). The Memorandum of
  Understanding and Loan Agreement for the MFA programme for Ukraine of up to EUR610 million was signed at the beginning of 2013. During 2012, the EU
  worked closely with the Egyptian and Jordanian authorities on possible MFA
  programmes to be launched at the beginning of 2013. The legislative
  decision on the programme for Georgia that the Commission proposed in
  early 2011 (EUR46 million in loans and grants), continued to await the
  European Parliament’s and the Council’s approval.
 In 2012, cooperation on enterprise
  policy continued to focus on improving the business climate and giving
  SMEs better financial support. Implementing the Small Business Act, a
  European framework for SME-friendly enterprise policy, remains a key
  objective. The level of progress differs widely among partners. A
  consultation mechanism to give SMEs a say on matters of concern to them
  would improve policy-making across the region. Reinforcing the rule of law
  and giving fair, simple access to public contracts by improving
  procurement systems, administrative simplification, better skills, easier
  access to finance and more innovation would boost business development. EU
  financial support is helping SMEs develop capacity in many cases.
 Tackling
  poverty and unemployment remained a high priority in rural areas in
  particular. In May, the EU held a high-level seminar to present and
  discuss the European Neighbourhood Programme for Agriculture and Rural
  Development (ENPARD) initiative. In the Southern partner countries
  pilot activities are being developed. Technical committees with the participation
  of civil society and the private sector have been set up. ENPARD actions
  started in Egypt, Algeria, Tunisia , Morocco, and in the East in Georgia. Furthermore, the Food and Agriculture Organisation (FAO) carried out the
  assessment of the agriculture and rural development sectors in each of the
  EaP countries. It also identified some common challenges at regional
  level. Results provide a solid basis for the newly created EaP panel on
  agriculture and rural development and will feed into the preparation of
  potential new programmes in this area.

2.3. Markets
 The EU remains the single most
  important trade partner for almost all countries in the neighbourhood. Work
  on deepening economic and trade integration between the EU and its partners
  therefore continued. The EU and Ukraine initialled an Association Agreement,
  including the DCFTA. Substantial progress was made in negotiations with Moldova after DCFTA negotiations were opened in March. Armenia and Georgia made very good progress in their association agreement negotiations, including those on
  establishing a DCFTA. Future inclusion of the Eastern DCFTA partners in
  the pan-Euro-Mediterranean system of diagonal cumulation of rules of
  origin will strengthen their economic integration with the EU and give
  them an additional incentive for establishing free trade areas with other
  ENP partners.
 After
  thorough preparations, the EU and Morocco opened DCFTA negotiations at the
  beginning of 2013. Preparations for negotiating a DCFTA with Tunisia also advanced. Preparations for negotiating a DCFTA with Jordan stalled, and they have
  not yet started with Egypt. The Agricultural and Fisheries Product
  Agreement with Morocco and the Palestinian Authority entered into force in
  October and January respectively. Negotiations of a similar agreement with
  Tunisia could not be resumed. The Agreement on Conformity Assessment and
  Acceptance of industrial products with Israel entered into force in
  January on pharmaceutical products.
2.4. Mobility
 The EU and
  its partners continued to improve the mobility of people. Significant
  progress was made in 2012 towards the goal of visa-free travel in the Eastern
  Neighbourhood, as mandated by the EaP Summit of 2011. Moldova took an important step forward in the context of its Visa Liberalisation Action Plan, moving
  to the assessment of the second phase and of benchmarks concerning the implementation
  of relevant legislation. Ukraine also made substantial progress on its
  VLAP. A dialogue on Visa Liberalisation with Georgia was started in June 2012, with the aim to examine the conditions for visa-free travel to the
  EU for Georgian citizens, while Armenia granted visa-free entry to EU
  citizens from January 2013. After Mobility Partnerships with Moldova, Georgia and Armenia were set up discussions towards a possible EU-Azerbaijan
  Mobility Partnership were launched. A first, major evaluation of the
  EU-Moldova Mobility Partnership showed how useful it is as a comprehensive
  bilateral framework for cooperation, but it also showed that that the
  amount of concrete activities (notably in the area of legal migration) could
  still be expanded. The EU’s offer of negotiations on visa facilitation and
  readmission agreements to Belarus remained unanswered. This underlines how
  important it is that the Member States make optimal use of the
  flexibilities of the EU Visa Code as far as Belarusian citizens are
  concerned.
 Closer
  ties on mobility and migration were developed with the Southern partners,
  taking advantage of the EU’s extensive experience with its Eastern
  partners. After dialogues on migration, mobility and security were begun with
  Tunisia and Morocco in October 2011, negotiations on Mobility Partnerships
  with the two countries proceeded well in 2012. Recently, the EU and Morocco announced the agreement at negotiators' level on the Political Declaration with a
  view to a Mobility Partnership. The aim is to finalise the negotiations in
  the first half of 2013. A dialogue with Jordan began in December 2012. Egypt has so far not taken up the EU’s proposal to launch a dialogue on migration, mobility
  and security.
 Programmes
  like Tempus, Erasmus Mundus, Marie Curie and Youth in Action, in which
  Neighbouring countries are particularly active, have been instrumental in
  promoting the mobility of students, academic staff, researchers and young
  people from those countries and the EU, thus contributing to the modernisation
  and opening up of higher education systems.
2.5. Cooperation
 The EU
  continued to provide financial support for reform in partner countries. The
  total amount available for partner
  countries in the period 2011–13 is EUR 6.5 billion. This includes
  additional funding (EUR 0.95 bn) made available after the launch of the
  Eastern Partnership initiative and the European Neighbourhood Policy
  review. Most of the additional funding is provided on the basis of the
  more-for-more principle, i.e. progress in building deep
  and sustainable democracy and in implementing related reform objectives.
  It is channelled through two umbrella programmes: EUR 540 million for
  SPRING[6]
  in the Southern Mediterranean and EUR 130 million for EaPIC[7]
  in the Eastern neighbourhood. Both programmes focus on promoting
  democratic transformation and institution-building and supporting
  sustainable, inclusive growth. The rest of the additional funding has
  mostly been allocated to mobility programmes (Tempus, Erasmus Mundus,
  etc.) and support to civil society organisations and non state actors. As
  regards future funding under the forthcoming European Neighbourhood
  Instrument (ENI), it is proposed that allocations will take into account
  such criteria as partner countries' commitment to reforms and progress in
  implementing these reforms, progress in building deep and sustainable
  democracy and level of ambition of partnership with the EU.[8]
 Under this
  framework, the Neighbourhood Civil Society Facility (CSF) was
  established in 2011 with an initial budget of EUR 26.4 million. Its
  purpose is to reinforce civil society organisations, including social
  partners, so that they can play their part in the changes in the ENP
  region and have a genuine role in the democratisation process. The first
  phase of the CSF implemented in 2012 focused on strengthening civil
  society's networking capacity and improving their abilities to promote
  national reform and increase public accountability.
 In
  December 2012, a second phase of the CSF was adopted with a new budget allocation
  of EUR 45.3 million for 2012–13. The goal is to support civil
  society organisations increased involvement in the policy dialogue with
  partner governments and their increased role in national reform processes
  and local development agendas.
 To support
  political actors striving for democratic change in their countries, in
  2011 the High Representative and the Commission proposed to establish a European
  Endowment for Democracy (EED). Important steps were taken in 2012 to
  organise and launch the EED as an independent European non-profit
  foundation, with the participation of representatives of Member States,
  the European Parliament, the European Commission, the High Representative
  and civil society organisations. The Commission and a number of Member States
  already committed funding of EUR 15 million (of which EUR 6 million from
  the Commission), which should allow the EED to become fully operational in
  2013.
 The
  decision on the mid-term review of the European Investment Bank’s (EIB)
  external mandate in October 2011 opened the way for additional
  loans of EUR 1.15 billion to partner countries and for up to
  EUR 1 billion in loans related to climate change by end 2013. In
  2012, the EIB signed almost EUR 1.7 billion of new loans in the Southern
  neighbourhood and almost EUR 0.9 billion in the Eastern neighbourhood
  (including Russia).
 The European
  Bank for Reconstruction and Development (EBRD), whose area of
  operation was extended in 2011 to include Southern and Eastern
  Mediterranean countries, allocated EUR 1 billion in May 2012 to
  start operations in the first four countries. They are Egypt, Jordan, Morocco and Tunisia. Up to EUR 100 million, partly from the EU budget,
  have been allocated to support technical assistance activities to identify
  and prepare projects.
 At the end
  of 2012, total Neighbourhood Investment Facility (NIF)
  allocations reached EUR 594.9 million (of which EUR 259.8 million for the
  East and EUR 335.1 million for the South). Since the creation of the NIF,
  a total of EUR 8 billion was leveraged from European financial
  institutions (with an almost equal split between East and South).
2.6. Sector cooperation
 Cooperation on sector-specific
  policy is an important and expanding part of the renewed ENP, bilaterally
  and in the context of the EaP and the Union for the Mediterranean (UfM). Increasingly
  based on convergence with EU norms and standards, it supports transition,
  reform, modernisation and ultimately, integration with EU markets. It
  covers a wide range of areas including employment and social policy,
  industrial policy, competition policy, agriculture and rural development, fisheries,
  climate change, the environment, energy security, transport, integrated maritime
  policy, the information society, research and innovation, education in
  particular higher education cooperation and mobility (through programmes
  like Erasmus Mundus, Tempus, Marie Curie Actions), youth cooperation, health,
  and culture.
 Some
  partners participate in legally binding sector instruments with the EU,
  such as the Energy Community, the bilateral aviation agreement, or the Regional
  Convention on pan-Euro-Mediterranean preferential rules of origin. These
  instruments establish regional building blocks that can offer social,
  economic, legal or regulatory and political benefits which go beyond the
  bilateral approach, and can lead to progressive integration in specific sectors.
  They create a web of links between the EU and its partners, extending the
  EU’s legal norms. The EU should reflect on how to progressively extend the
  geographic scope of these instruments to open them to other ENP partners,
  or on developing with willing partners sector arrangements like the
  transport community with countries of the Western Balkans.
 In the energy sector,
  joint efforts focused on energy security, market reform and integration,
  including by developing infrastructure, improving energy efficiency and using
  more renewable energy sources. Further steps were taken towards opening
  the strategic Southern Gas Corridor. Eastern European partners such as Moldova and Ukraine made progress on implementing their Energy Community commitments. Georgia has recently applied for membership as well. The EU and its Mediterranean partners
  made limited progress towards setting up a Mediterranean Energy Community
  in the future.
 Partners took further steps to
  prepare and implement environmental strategies and legislation, and
  made some efforts to improve the state of the environment.  The EU helped
  partner countries to tackle environmental degradation and promote the sustainable
  use of natural resources, including in the areas of air quality, water,
  industrial pollution, waste management, hazardous pesticides, nature
  protection and forest management, and to strengthen environmental
  information systems and governance. Partners need to fully implement the
  multilateral environmental agreements they are parties to.
 The flagship programmes for
  Prevention of, Preparedness for, and Response to natural and man-made
  disasters (PPRD South and East) contributed to the partial implementation of
  the 2005 Hyogo Framework for Action for Disaster Risk Reduction,
  facilitating approximation to EU legislation and standards. The EU will
  support the development of communication and awareness strategies,
  capacity building and improved coordination.
 Partners
  took some steps in the field of climate change, notably through
  some Clean Development Mechanism and Joint Implementation projects. The EU
  helped them make the transition towards low carbon development and climate
  resilience through capacity building and investments. However, designing
  and implementing ambitious climate policies remains a challenge, as does
  mainstreaming of climate considerations into other related policies (e.g.
  energy, transport, agriculture). Partners are encouraged to engage in the
  development of national climate change strategies, that is low-carbon
  development policies and climate resilience strategies, which will also be
  needed in the context of international negotiations and their completion
  in 2015. This includes integrating climate change in other policy areas.
 ENP
  partners implemented reforms to move towards EU transport
  standards. Joint work in the EaP Transport Panel focused on closer
  integration of transport systems, defining a regional transport network
  connected to the TEN-T and on identifying priority interconnection
  projects. This work should be finished in 2013; similar work with Southern
  partners should be endorsed by the second Ministerial Transport Conference
  in November 2013. The EU and Moldova signed at the beginning of this year a
  Common Aviation Area Agreement. Such an agreement with Israel was already initialled in 2012. In 2013, aviation negotiations will be launched with Tunisia and should be resumed with Lebanon. Negotiations on an aviation agreement with Ukraine, re-launched in 2012, should be concluded in 2013, and started with Azerbaijan in 2013. The informal EaP ministerial dialogue on transport took place in February 2013
  to prepare for the second meeting of the EU and Eastern Partnership
  Transport Ministers in 2013.
 The
  EC-EIB-International Maritime Organisation (IMO) have worked together in
  2012 on a set of joint proposals for action as a follow-up to a feasibility
  study on Mediterranean Sea Maritime development cooperation which has been
  carried out under the Facility for Euro-Mediterranean
  Investment and Partnership (FEMIP) Trust Fund. In
  2013, the EC-EIB-IMO are co-organising the 12th FEMIP Conference with a
  view to enhance marine and maritime cooperation among Mediterranean
  countries and support economic growth and jobs creation in the region.
 Regarding
  the information society policy, joint work remained focused on
  establishing fair, modern, open and transparent telecommunication markets,
  the open and vibrant use of the internet for all and a diverse media
  environment. An EaP Electronic Communication Regulators Network was
  established in 2012. The Mediterranean Regulators Network will be
  strengthened.
 Important
  steps were made towards the development of the Common Knowledge and
  Innovation Space. In 2012 the participation of ENP countries in the
  Seventh Framework Programme (2007–13) (FP7) increased. The international
  cooperation call for proposals published in July 2012 included activities
  specifically targeted to the ENP countries at regional and bilateral
  levels with the aim to support policy dialogue as well as a special action
  for bridging the gap between research and innovation. At the end of 2012
  the total EU contribution to projects with ENP countries` participation
  reached EUR 960 million. In March 2012, a science and technology
  cooperation agreement was signed between EU and Algeria. The Republic of Moldova was associated to the FP7 as of January 2012. Initiatives to
  enhance Euro-Med bi-regional cooperation are under way following the
  Euro-Mediterranean conference on research and innovation held in Barcelona in April 2012. A dedicated Panel on Research and Innovation under the current EaP
  platform IV "Contacts between people" was initiated in 2012 and
  will be launched in 2013.

57. In
2012 dialogue continued with partner countries to identify their key interests
with regard to participating in EU programmes and working with EU agencies.
The EU organised information meetings on the general approach to participating
in programmes and working with agencies in most of the partner countries.

In October, the protocol allowing Morocco to participate in EU programmes open to the participation of ENP partners entered
  into force. In December, the EU signed
  similar protocols with Armenia and Jordan. Negotiations on protocols with Azerbaijan and Georgia started.[9]
 In November, the EU organised an
  information seminar bringing together ENP countries and EU agencies. It
  adopted a financial assistance project of EUR 3.7 million, starting
  in early 2013, to support EU agencies’
  preparatory measures for helping ENP partners participate in their work.
  ENP partners strengthened interaction with several EU agencies, including on
  bilateral technical cooperation.
 The EU is
  ready to negotiate protocols allowing other interested ENP countries to
  participate in EU programmes. As the current programmes expire in 2013,
  the EU will give partners information on the 2014–20 programmes open to
  their participation, once these have been adopted. It will continue to help
  partner countries participate in the work of EU agencies, in particular by
  providing funding for preparatory activities. Partner countries will need
  to carefully identify a limited number of priorities to facilitate further
  dialogue and cooperation based on a mutually identified interest. The EU
  is prepared to co-fund, on a temporary and decreasing basis, some of the
  costs associated with participation.
2.7. Eastern and Southern Dimensions of the ENP

61.
The ENP is based on
individual partnerships between the EU and each individual neighbour through a
single policy, based on mutual accountability and a shared commitment to the
universal values of human rights, democracy and the rule of law. This approach
is complemented by the two regional dimensions of the ENP. The EaP and the
Partnership for Democracy and Shared Prosperity with the Southern Mediterranean
neighbours aim to foster regional cooperation and to develop regional synergies
and responses to the specific geographic, economic and social problems of each
region.

2.7.1 Eastern Partnership
 Significant bilateral and
  multilateral progress was made in implementing the EaP. Despite this,
  limited progress in some countries in terms of democratic reforms, human
  rights and the rule of law continued to pose a challenge for the
  achievement of the objective of partner countries’ political association
  and economic integration with the EU. The Roadmap drawn up in 2012[10] was a basis for guiding and
  monitoring the further implementation of the Partnership’s
  objectives defined in
  the Prague and Warsaw Declarations until the next summit in Vilnius in autumn 2013.
 The EaP platforms and panels provided a common space
  for dialogue, cooperation and exchange of information in areas such as
  public administration reform, transport and migration and asylum. Civil
  Society Forum platforms have now been established in all six EaP partner
  countries. Substantial progress on Association Agreements (AA) including
  Deep and Comprehensive Free Trade Areas – key instruments in support of
  democratic and economic transformation - was made and the EU made headway
  towards the goal of visa liberalisation for short-term travel with five of
  the six partner countries. The EU has provided substantial funding to
  support partners’ reform efforts. For the period 2011–13, EUR 1.9 billion
  is available for bilateral and regional cooperation (including EUR 350
  million of additional resources). The Eastern
  Partnership Integration and Cooperation Programme (EaPIC) has served as an instrument for a more
  systematic application of increased policy conditionality and the
  application of the ‘more for more’ principle. In 2012 three partner
  countries (Moldova, Georgia and Armenia) benefited from EaPIC in terms of
  increased financial assistance.
 The establishment of the Eastern
  Partnership Informal Dialogues, to be held at the level of the HR/VP, the
  Commissioner for European Neighbourhood, and the Foreign Ministers of the
  six partner countries, was agreed. The Informal Dialogues should address
  any foreign policy issues of mutual interest for the EU and partners, monitor the implementation of the Eastern Partnership Roadmap
  and, when appropriate, include a sector dialogue. The
  first meeting took place in Chisinau in June 2012, and the second dialogue was held in Tbilisi in
  February 2013, including an informal dialogue on transport, with the
  participation of Vice President of the Commission Kallas and Transport
  Ministers of the partner countries.
 The summit, scheduled to take
  place in Vilnius in November 2013 will be another milestone in the
  implementation of the EaP. Some of its Eastern European partners wish to
  go further in their relations with the EU. In the May 2011 Communication
  on the ENP[11], the
  High Representative and the Commission pointed out that the values upon
  which the European Union is built — freedom, democracy, respect for human
  rights and fundamental freedoms, and the rule of law — are also at the
  heart of the process of political association and economic integration
  under the ENP. These are the same values that are enshrined in Article 2
  of the Treaty on European Union and on which Articles 8 and 49 are based. The Heads of
  State and Government at the Warsaw Eastern Partnership Summit in 2011 have
  acknowledged the European aspirations and the European choice of some
  partners[12].
2.7.2. Partnership for
Democracy and Shared Prosperity

66.
In 2012, a Roadmap[13] set out objectives to be pursued under the Partnership in
the southern neighbourhood, at bilateral and regional levels, and the
achievements expected by the end of 2013. Implementation
of the Roadmap was influenced by the changing situations of the Mediterranean
Partners in 2012. The EU has pursued its policy of renewed engagement
bilaterally and regionally, offering support for transition while recognising
that its ownership lies with the partners. In terms of financial support, in addition to the €3.5
billion already programmed for the period 2011-13, the EU is providing around
€700 million in new grants for the Southern neighbourhood.

67.
2012 saw the successful holding of
democratic elections (Egypt, Algeria and Libya), electoral reforms in
preparation for elections in Jordan and Lebanon and the formation of new
governments in most countries. Through assistance or observation missions, the
EU supported what were often the first truly democratic elections. Multiparty
politics gained a new dynamic and civil society was more active and vocal. In
many countries in the region, there is more respect for freedom of expression
generally and it has become easier to establish political parties or trade unions.
Nevertheless, it became clear that democratic institution building will take
time, particularly where legal uncertainty still hangs over the transition
process (Egypt). However, the new dynamism of political parties and civil
society is a sign of the development of a democratic culture, which provides
the EU with new channels for dialogue. At the same time, with the worsening of
the security situation, in particular in Libya, Sinai and Sahel, reforming the
security sector inherited from the previous regimes, while maintaining law and
order, is becoming an important issue.

68. On the economic front, political uncertainties, as well as a lack
of structural reforms for inclusive growth, have continued to put a brake on
economic activity. Fiscal deficits remained high or even worsened in 2012, due
to a weak economy and increased expenditure to meet vocal social demands.
Unemployment levels edged up from already high levels. Although the political
context was not conducive to decisive economic reform, there are some signs of
stabilisation.

The EU’s Special Representative
  for the Southern Mediterranean played a leading role in enhancing the EU’s
  political dialogue with the countries in the region engaged in transition,
  contributing to the EU’s work in strengthening democracy and institution
  building and enhancing its effectiveness, presence and visibility in the
  region.  Task forces were set up for Tunisia (28-29 September 2011), Jordan (22 February 2012) and Egypt (13-14 November 2012). The task forces helped to deepen the EU’s
  relationship with the three countries in a results-oriented, tailored and
  differentiated way, involving all EU institutions and the private sector.
  European entrepreneurs also participated in Missions for growth led by
  European Commission Vice-President Tajani to Morocco and Tunisia in November 2012. In Tunisia, an EU-Tunisia Council for Entrepreneurship was launched to
  advise the Tunisian government on business climate improvements.

70. At
regional level, the Northern co-presidency of the Union for the Mediterranean
Northern was transferred to the EU and Jordan assumed the Southern
co-presidency. This was a sign of renewed willingness on both sides of the Mediterranean to turn the UfM, as a unique forum of 43 members,[14] into
an effective catalyst for the development of regional projects. The EU-League
of Arab States Ministerial Meeting in November gave a clear political message about
the commitment of EU and Arab Ministers to cooperate in tackling the issues
they have in common. In December, a Joint Communication[15] set out ways in which the European Union could
support closer cooperation between the countries of the Maghreb. The Commission
also participated in the 5+5 Summit in October, between the five countries of
the EU Southern Mediterranean and the Maghreb, showing support for further
regional integration as an important way of advancing security and prosperity.

While substantial progress
  towards the Roadmap objectives was made in 2012, further progress in 2013
  will depend on the continued willingness of the EU and partners to deliver
  on the commitments already made. As the political situation stabilises, and
  partner countries advance on the transition
  to democracy, governments should be in a better position to reap the
  benefits of what the EU has to offer and give new impetus to their
  participation in regional cooperation.
2.8. Addressing Conflicts in the neighbourhood
 Addressing the protracted
  conflicts in the neighbourhood — in Moldova, the South Caucasus, the Middle East — is an important part of EU policy. The EU's CFSP/CSDP engagement will
  continue to be part and parcel of the ENP. The presence of CSDP missions
  in the neighbourhood reflects the EU’s comprehensive, multi-faceted
  approach in this area, addressing issues of security, the rule of law and
  civilian crisis management.
 The EU’s Special
  Representative for the South Caucasus and the Crisis in Georgia continued to play a key role in the EU’s efforts to resolve the conflicts in Georgia
  and Nagorno Karabakh. Together with the UN and the OSCE, the Special
  Representative co-chaired the Geneva International Discussions on the
  crisis in Georgia. These talks are currently the only forum for
  dialogue between the Georgian authorities and the break-away regions of
  Abkhazia and South Ossetia, though the new Georgian administration has
  expressed the intention of establishing direct communication channels with
  representatives of the de facto entities. The EU Monitoring Mission in Georgia has helped stabilise the situation there through its monitoring presence along the
  Administrative Boundary Lines with the break-away regions.
 On Nagorno Karabakh,
  high-level contacts have continued with Armenia and Azerbaijan to encourage the peaceful settlement of the conflict, specifically by supporting the work
  of the OSCE Minsk Group. While giving full credit to the co-chairs of the
  Minsk Group, the EU flagged its readiness to help facilitate
  reconciliation and rehabilitation, in support of any progress that might
  be made in negotiations. In September 2012, the second phase of the
  EU-funded civil society programme, the European Partnership for the
  Peaceful Settlement of the Conflict over Nagorno-Karabakh (EPNK), was
  launched.
 The 5+2
  Transnistrian settlement process, which resumed officially in December
  2011, gained some momentum. In January 2012, the two sides, meeting in Odessa, agreed on a ‘small steps’ approach to tackle practical issues of primary relevance
  for ordinary citizens. In April, the 5+2 adopted rules of procedures and a
  comprehensive negotiating agenda by consensus. The negotiating agenda covers
  socio-economic, humanitarian, legal, political and security issues. From
  then on, the 5+2 participants lent their political support to the
  technical discussions led by the various sides. This enabled the resumption
  of freight rail transport through the Transnistrian region and substantial
  progress on education and other socio-economic issues. In November, the
  participants exchanged views, without reaching a consensus, on the need to
  discuss the political aspects of the settlement and the lack of clarity
  which hampers the resolution of socio-economic and humanitarian issues.
  The EU, aiming to consolidate stability in the region, participated
  actively in the 5+2 format and stepped up its presence on the ground. It did
  so by facilitating the participation of Transnistria-based businesses in
  EU-Moldova trade flows and financing a growing number of confidence-building
  projects in the social, health, education and humanitarian areas.
 Moldova and Ukraine continued to participate constructively in the
  work of the EU Border Assistance Mission to Moldova and Ukraine (EUBAM).
  With EUBAM support, the customs authorities and border guard service of Moldova continued to improve their professional capacities and inter-agency cooperation within
  the country and with Ukraine. EUBAM continued to support the demarcation
  of the state border with Ukraine.
 Changes in the Arab world underlined once again the
  urgent need to resume negotiations between Israel and the Palestinians.
  During 2012 the EU continued to encourage both parties to return to the
  negotiating table in line with the Quartet statement of September 2011.
  Despite Jordan’s support
  at the start of the year, regrettably such negotiations were not resumed.
  The EU, while reaffirming its support for the two-state solution,
  expressed increasing
  concern about developments on the ground that threaten to make a two-state
  solution impossible. It continued to advocate
  resolving the Israeli-Palestinian conflict through peaceful
  bilateral talks based on international law and parameters already agreed.
  Besides its consistent practical support in the framework of the ENP, its
  political endeavours were best reflected in its Foreign Affairs Council
  Conclusions of May and December 2012.
 It further
  assisted the Palestinian Authority in its state-building efforts based on
  the rule of law and respect of human rights. It re-iterated its call for
  intra-Palestinian reconciliation and focused on preventing unilateral acts
  threatening the viability of a two-state solution, most importantly in
  relation to the expansion of Israeli settlements, including expansion in East Jerusalem. Fully recognising Israel’s legitimate security needs, it continued to
  appeal for an end to the Gaza Strip blockade with the main aim of
  improving its unsustainable humanitarian situation. It closely cooperated
  with the US and other international partners, including within the
  Quartet. It welcomed the mediation efforts of Jordan and Egypt in favour of conflict resolution, and the Arab League’s general support for the Middle East
  Peace Process.
 EUBAM Rafah operations are suspended due to Hamas’ violent takeover of the
  Gaza Strip in mid-2007. Substantial mandate implementation has been on
  hold ever since, yet the mission has maintained its capacity and
  preparedness to reactivate and redeploy to the Rafah Crossing Point once
  political and security conditions allow it to do so. In the aftermath of
  the Gaza crisis in November 2012, discussions re-commenced on the possible
  reactivation of EUBAM Rafah.
 In the case of Syria, the EU
  has repeatedly condemned the ongoing human rights violations, decided
  several rounds of restrictive measures against the Syrian regime, and
  provided humanitarian aid to IDPs and refugees. It has taken diplomatic action
  to facilitate a peaceful solution to the crisis, supporting the UN-League
  of Arab States Special Envoys, participating in the Friends of Syria
  meetings, and supporting efforts to foster a unified, representative
  opposition. Throughout the Syrian crisis,
  the EU has been at the forefront of the international humanitarian
  response, acting in close coordination with other donors and international
  organisations to ensure that needs were promptly identified and aid
  delivered rapidly and effectively. In 2012, EUR 150 million in
  humanitarian assistance has been provided in Syria and in the neighbouring
  countries, complemented by a EUR 208 million contribution from the EU
  Member States. Around EUR 80 million has been provided under the ENPI and
  under thematic instruments to address longer term needs of the Syrian
  population (support to civil society, Human Rights defenders, refugees...)
  and to help neighbouring countries to cope with the influx of refugees.
3. Policy coherence
 The ENP is a prime example of
  a comprehensive approach to external policy. Cooperation with our
  neighbours uses all instruments and policies at the EU’s disposal. It
  combines long-term political association, trade policy, sector policies
  and financial cooperation with shorter-term policies and measures of
  CFSP/CSDP instruments. It shows how a comprehensive approach can be
  used to generate coherent action involving all relevant EU actors.  As
  announced in the Commission Work Programme for 2013, the HR and the
  Commission are currently working on a Joint Communication outlining how to
  develop this approach further.
 It is working
  closely with other donor countries and international actors to respond to
  humanitarian crises, promote democratic transition and foster economic
  development in partner countries. Seeking better synergies and
  coordination with major International Financing Institutions (IFIs) in the
  ENP region is already a key task and will increase in importance in the
  future. Early consultation mechanisms, both through the current frameworks,
  the Tripartite MoU between the Commission, the EIB Group and the EBRD and
  the Luxembourg Group (the EU, the IMF, the World Bank, the IFC, the EIB
  and the EBRD), and increased cooperation at field level are essential to
  improve policy alignment towards ENP policy objectives. The Special
  Representative for the Southern Mediterranean and the Commission take care
  of coordination with IFIs and the G8 in the context of the Deauville process. At the global level, ENP policy issues were also discussed in the context
  of the annual meeting with the World Bank’s EU executive directors in 2012.
  Consultations with EU board members of the EBRD are also regularly
  organised and can address ENP related policy issues.
 The
  political and strategic partnership between the Council of Europe (CoE) and the EU has been continuously strengthened over recent years. Cooperation
  and dialogue with the CoE contributes to achieving the shared objectives
  of greater respect for the common values of human rights and fundamental
  freedoms, democracy and the rule of law in the countries in the region. The
  EU also works closely with the OSCE on conflict resolution in the context
  of the Minsk Group and the 5+2 Transnistrian settlement process, and with
  both the OSCE and the UN in the Geneva International Discussions on the
  conflict in Georgia.
 The
  European Parliament, the Committee of Regions and in particular its two
  associated bodies CORLEAP (Conference of Regional and Local Authorities of
  the EaP) and ARLEM (Euro-Mediterranean Regional and
  Local Assembly), and the European Economic and
  Social Committee take an increasingly active and important role in the ENP,
  contributing to the development of political dialogue and better
  incorporation of other dimensions of cooperation into the ENP. This further
  reinforces synergies in the implementation and communication of the
  policy.
 The EU’s
  neighbours are also becoming partners in the area of CSDP. Ukraine participates in a number of CSDP missions. CSDP framework participation agreements
  have been concluded with Ukraine and Moldova, negotiations are underway
  with Georgia and Armenia has also expressed interest.
 There is still room for
  improvement. The EU will continue to work on how the various actors can operate
  in a more coherent manner. It is clear that in a number of areas, in
  particular the area of mobility, where important policy competences rest
  with the Member States, the EU needs to work even more closely with its
  Member States to deliver on its commitment towards its partners. It also
  needs to find ways to involve other stakeholders in shaping policy, for
  instance in preparing Action Plans or Association Agendas.
 EU Institutions and individual
  Member States must strive towards maximizing coherence, which is essential
  to bring EU added value. The Delegations of the EU in partner countries
  have an important role to play in bringing all actors together, ensuring
  coherence and synergies on the ground. They will also need to take on a
  bigger role as hubs for partner countries’ authorities, civil society, or
  businesses to obtain information about policy and the opportunities for seeking
  support.
4. Challenges ahead
 The universal values on
  which the EU is built — freedom, democracy, respect for human rights and
  fundamental freedoms, and the rule of law — also underpin the ENP. For
  partners who want to become as close to the EU as possible, it is the main
  reference point for their domestic reforms. This reform process must be
  inclusive. Only if the whole societies, not just the political elites or
  certain parts of the political spectrum, makes this choice and adheres to
  the universal values referred to above, will the process be sustainable
  and ultimately successful.
 The principle of ‘more for more’
  will remain an important element to make the ENP responsive to the efforts
  and progress being made in democratic reforms. The new financial
  instrument for the neighbourhood for the period 2014-2020 will incorporate
  this principle in the area of financial cooperation. But the principle is
  not restricted to financial cooperation. As stated in the 2011 joint Communication,
  the EU will also adapt its offer, notably in terms of access to markets
  and better mobility, in response to the level of reforms and ambition
  demonstrated by its partners.
 Analysis
  has shown that – with the exception of a few countries  who acted on most
  of the recommendations -  many of the key recommendations contained
  in previous year's ENP progress reports remain valid and will continue to
  be at the heart of the reform process in the year(s) to come. The very limited progress in a number of partners towards the
  jointly agreed objectives, and the limited response by some of them to the
  incentives provided by the ENP may require a critical look at its instruments
  and mechanisms. If necessary, the EU must reflect on whether adjustments
  to these may allow it to respond better to the expectations and needs of
  partners, thus contributing to better take-up. At the same time, partners
  need to show their commitment to achieving the objectives jointly agreed with
  the EU. Priorities and reform agendas agreed with the EU must become an
  integral part of national strategies for reform and development.
 Opening up new opportunities
  for citizens to travel, study and do business with the EU is
  crucial to sharing the values on which it is built. The EU should put more
  emphasis on the kind of policies and measures that focus on these issues.
  Mobility of people, scholarships for students and business networks may do
  more to clinch the ‘European choice’ of partners than anything else. In
  the East, Visa Liberalisation Action Plans have proved effective for
  encouraging reform in the partner countries. Their full implementation by
  partners should bring the prospect of visa-free regimes closer to becoming
  a reality.
 The multi-faceted, multi-actor
  nature of the ENP and its sometimes technical nature make the policy
  difficult to communicate. However, the EU is seen as a model and an
  inspiration for people in the neighbourhood when it comes to the values that
  are the basis for the ENP — human rights, democracy, fundamental freedoms
  and prosperity and solidarity. A public opinion
  survey conducted in ENP partner countries[16]
  shows that the EU is positively perceived by people in most of its
  neighbours[17]. The EU is
  associated with the promotion of human rights, solidarity, prosperity,
  democracy and freedom of speech. These values and economic development are
  seen as main aspects of cooperation. The same survey reveals however that
  many people do not feel they are well informed about what the EU does in
  their countries. This underlines the need to better inform citizens in
  partner countries about the ENP, its objectives and instruments and its
  achievements.
 Conflicts remain a problem in some areas of the European neighbourhood,
  and risk undermining nascent reform processes. Fostering peace and
  stability by using all the civil and military tools available to the EU is
  an urgent necessity that cannot be disregarded.
 Shifts in the foreign
  policy orientation of partner countries and the increasing involvement
  of other actors in the region may also make the EU less attractive as a
  model and partner. This will require the EU to reflect on how to have a
  more multilateral policy approach, involving and working with, more
  systematically than it does now, the other actors working in the
  neighbourhood in addressing, together with partner countries themselves,
  issues of shared interest. In the Southern Mediterranean, Turkey,
  countries of the Gulf and organisations such as the Arab League are
  playing a more prominent role in attempts to resolve conflicts and are
  promoting their economic and political interests more. The emergence of
  alternative regional integration schemes in the Eastern neighbourhood
  presents a new challenge. The emergence of the Eurasian Union between the Russian Federation, Belarus and Kazakhstan has changed the landscape. This is perceived as offering
  an alternative model of political and economic development to integration
  with the EU. However, there is a choice to be made. For example, joining
  the Customs Union that is part of the Eurasian Union would preclude
  economic integration with the EU through a DCFTA.
5. Conclusion
 While the underlying
  principles and objectives of the ENP continue to apply to all partners and
  all parts of the policy, the EU’s relationship with each one of its
  partners is unique, and the instruments of the ENP are tailored to serve
  each of those relationships. The ENP provides the EU with a toolbox of
  instruments that allows it to adapt its policy approach and response to the
  individual context of its partners and their aspirations for their
  relationship with the EU. It will increasingly need to differentiate its
  policy response, in line with the different developments, ambitions and
  needs of its partners.
 Partners should not lower
  their ambition and commitment to reform their societies and their
  political and economic systems. This remains essential to fulfil the
  aspirations and meet the needs of their populations. A renewed political
  commitment to actually implementing often difficult reforms is crucial.
  For its part, the EU needs to continue to live up to its commitments of
  stronger political association, greater economic integration and support for
  reforms.

[1] COM (2011) 303 of 25.05.2011

[2] This joint
Communication is accompanied by: twelve Country Progress Reports assessing the
implementation of the ENP in 2012 with which an ENP Action Plan or an
equivalent document has been agreed; two regional progress reports reviewing
the progress made in 2012 in the implementation of the Eastern Partnership and
the Partnership for Democracy and Shared Prosperity; and a Statistical Annex.

[3] In line with UNGA Resolution 67/19, the denomination 'Palestine'
will be used on all occasions when referring to what to date has been referred
to as 'Palestinian National Authority' or 'occupied Palestinian territory'.
This does not entail any recognition of Palestine as a state in line with the
December 2009 Council Conclusions.

[4] Joint Statement of
the Eastern Partnership Foreign Ministers’ Meeting, Brussels, 23 July 2012,
Council of the European Union, 12862/12, PRESSE 348. Joint Communication to the
European Parliament, the Council, the European Economic and Social Committee
and the Committee of the Regions, Eastern Partnership: A Roadmap to the
autumn 2013 Summit, JOIN(2012) 13 final, 15.5.2012.

[5] Transparency International, Corruption Perceptions Index 2012.

[6] Support for Partnership, Reform and Inclusive Growth.

[7] Eastern Partnership Integration and Cooperation Programme.

[8] COM(2011) 839 final

[9] Protocols allowing the Republic of Moldova and Ukraine to participate in EU programmes open to their participation
entered into force in 2011 and a protocol was signed with Israel in 2008.

[10] Joint
Communication to the European Parliament, the Council, the European Economic
and Social Committee and the Committee of the Regions, Eastern Partnership:
A Roadmap to the autumn 2013 Summit, JOIN(2012) 13 final, 15.5.2012.

[11] Joint
Communication to the European Parliament, the Council, the European Economic
and Social Committee and the Committee of the Regions, A new response to a
changing Neighbourhood, COM(2011) 303. 25.5.2011

[12] Joint Declaration Eastern Partnership Summit, Warsaw, 29-30
September 2011.

[13] Joint Staff
Working Document, Partnership for Democracy and Shared Prosperity: Report on
activities in 2011 and Roadmap for future action, Accompanying the document
Joint Communication to the European Parliament, the Council, the European
Economic and Social Committee and the Committee of the Regions, Delivering
on a new European Neighbourhood Policy, SWD(2012) 121 final, 15.5.2012

[14] Syria’s participation is currently suspended, so there is cooperation
among 42 countries.

[15] Joint
Communication to the European Parliament, the Council, the European Economic
and Social Committee and the Committee of the Regions. Supporting closer
cooperation and regional integration in the Maghreb: Algeria, Libya,
Mauritania, Morocco and Tunisia. JOIN(2012), 36 final, 17.12.2012.

[16] EU Neighbourhood Barometer Spring 2012 and Autumn 2012

[17] With the
exception of Egypt and Libya where a majority seems to not have a view, or much
information, about the image of the EU or the state of relations.